When Sprint(NYSE: S) announced back in October its Direct 2 You program, under which its technicians would deliver new phones to subscribers at their homes, there was a certain logic to it.
It gave the company a service its wireless rivals did not offer, and it removed a pain point in the phone-upgrade process for consumers. Using Direct 2 You not only means they don’t have to leave their homes, it also gives them help in configuring their new handsets.
It’s a smart move, one that differentiates Sprint from its rivals while also building brand loyalty. In theory, it also serves as way for the company to attract new customers.
Now, DISH Network(NASDAQ: DISH) plans to follow Sprint with its own house-call-based service, but it’s going outside its satellite-television wheelhouse to do it.
The pay-TV company has introduced “Smart Phone Repair,” a service that will dispatch a technician to your home to fix a broken smartphone. The company will send a serviceperson to any home or business in the United States (even those that are not DISH customers) to fix things like cracked screens or to replace batteries.
At launch, the program is limited to fixing iPhone 5, 5c, 5s, 6 and 6 Plus models, but the company plans to add additional devices and smartphone accessories in the coming months.
“Fixing your phone shouldn’t mean losing your phone for days on end, so we come to you — whether you’re at the office, the gym or even the coffee shop,” said John Swieringa, DISH’s executive vice president of operations. “DISH is uniquely positioned with the technical know-how and ability to respond to a customer’s needs in every state across the country.”
While DISH will be providing a service for which there is likely some demand, it’s an odd deviation from its core product. In going into people homes with Direct 2 You, Sprint clearly enhances its wireless business. With Smart Phone Repair, DISH is entering an entirely new space that has nothing to do with satellite television.
DISH is offering convenience — albeit with a $35 fee for showing up — but the real question here is whether enough business demand exists to justify the service. Most malls have smartphone screen repair kiosks, and every area has stores that fix phones. In addition, many consumers pay for extended warranties that require them to bring their devices back to the companies that sold them in the first place for repairs.
This is an interesting play by DISH, and one that may open up all sorts of in-home service opportunities for it, but as it currently stands, the program seems like a very limited opportunity.
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Daniel Kline has no position in any stocks mentioned.
DISH Debuts an At-Home Smartphone Repair Service
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